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Economists said that a debt buyback would have other consequences.
| Updated LONDON — It is looking less likely that the Greeks can do a debt buyback on the cheap.
But officials, including Wolfgang Schäuble, the German finance minister, said the payout would be made only once one part of the agreement — a debt buyback — had been completed.
Argentina's government announced a debt buyback in response.Wait till they get a load of meA new Batman film, "The Dark Knight", topped America's box office for the fourth weekend, according to Warner Bros. The film is already the third-largest-grossing of all time, although, adjusted for inflation, the caped crusader's latest venture ranks only 49th.
ATHENS — With Greece's coffers nearly empty, the government said Wednesday that it would have to borrow 10 billion to 14 billion euros to pay for a debt buyback that its international creditors have demanded in exchange for releasing more bailout money to the troubled country.
With Greece's coffers nearly empty, the government said Wednesday that it would have to borrow 10 billion to 14 billion euros to pay for a debt buyback that its international creditors have demanded in exchange for releasing more bailout money to the troubled country.
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Bond prices advanced after the U.S. Treasury took steps toward repurchasing outstanding securities, saying it will publish a set of debt buyback rules for public comment so that it might begin paying off the national debt.
The complex and contentious debt buyback, financed by a 10 billion euro, or $13 billion, loan from the country's creditors, will allow Greece to erase 20 billion euros of its 344 billion euro debt, and in so doing, secure the backing of the International Monetary Fund, which has said it cannot lend any more money to Greece unless its stack of debt is reduced.
WALL STREET JOURNAL Concerns Mount That Investors Might Balk at Debt Buyback in Greece | Bankers close to a plan to reduce Greece's debt load by having the country purchase its discounted bonds are concerned that hedge funds might "blow up the deal" by holding out for a higher price.
Thirty-year yields have dropped more than four-tenths of a percentage point since Jan .20, buoyed by the Treasury's planned debt buyback and reduced government auctions.
Such an attitude, in fact, illustrates one of the main criticisms of debt buyback strategies, which were frequently used during the Latin American debt crisis in the 1980s.
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